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First-party data, which is the information collected directly from shoppers, has been a gold mine for brands for decades, used to provide more personalized marketing, product recommendations, and most importantly, seamless and engaging customer experiences.
But in more recent years, companies have relied more and more on using purchasable third-party data, which is the information received from external parties without direct connection to the customers. Why? Because first-party data can be more cumbersome to collect. Gathering first-party data requires much more effort to get user permission or direct input from shoppers who are asked to provide details about who they are and how they shop so brands can create growth strategies out of these analyses.
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Now, first-party data is becoming business-critical as traditional third-party resources are becoming scarcer. Web browsers are discontinuing third-party cookies, mobile apps are requiring user permission before tracking in-app data, and international treaties like GDPR are starting to influence how the U.S. government regulates this information as well (particularly in states like California).
In lieu of third-party data, brands should focus on strategies to boost first-party data collection built on customer trust, with shoppers voluntarily offering up their information to improve their experience. In doing so, they’ll connect with customers on a one-to-one basis and have the resources to flesh out personalized experiences that thrill and delight shoppers to come back to their favorite brands.
With Google Chrome, Apple Safari, and other web browsers sunsetting third-party cookies in 2023, brands have a short amount of time to create a first-party data strategy. In this checklist, we’ll walk you through all the opportunities available for your business to gather first-party data. With this information, you can devise an action plan that leverages how to use first-party data to maximize the potential of your customer experience.
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